Megan writes, "Comprehensive health care program costs much, much more than the government anticipated. Not shocked? You must be one of the rare few who knows that government health care plans tend to double their costs in short order, and then keep going." This is the sort of thing you hear all the time. Government is so wasteful. It can't control its spending. I'm sure Megan didn't even think she was saying anything controversial. And she's right: Over time, Medicare's costs have almost certainly doubled. In fact, the costs of lots of things double. Some televisions today cost twice as much as some televisions from back in the day. But let's contextualize the numbers a bit. Here's per enrollee cost growth in Medicare and Private Insurance between 1970 and 2000:
As you'll notice, the "government health plan" has been better at controlling costs. As the Urban Institute concluded, "Medicare's long-term success in holding down spending is partly a result of its structured payment systems and regulatory controls. Reform proposals could rely on the ability of Medicare to hold down per enrollee costs as long as it continues to play a meaningful role in purchasing benefits and services." Indeed, if Medicare didn't have to basically keep pace with the payments of private insurers, it would be even cheaper. You can say a lot of things about government health insurance, but you can't say it can't control costs.
As you'll notice, the "government health plan" has been better at controlling costs. As the Urban Institute concluded, "Medicare's long-term success in holding down spending is partly a result of its structured payment systems and regulatory controls. Reform proposals could rely on the ability of Medicare to hold down per enrollee costs as long as it continues to play a meaningful role in purchasing benefits and services." Indeed, if Medicare didn't have to basically keep pace with the payments of private insurers, it would be even cheaper. You can say a lot of things about government health insurance, but you can't say it can't control costs. 
